Facing an exodus of young shoppers to boutiques, specialty retailers and the Internet, Japan’s department stores are turning grey.
Currently about 40-50% of customers at Japan’s department stores are over 50 years old with 60 year olds making up 30% of those customers.
Mirroring the overall population in Japan, customers at department stores in Japan are getting older. Is this a negative reality or an opportunity in disguise as these older customers are spending more money than the younger customers.
The Sogo store in Kashiwa, Chiba Prefecture reports that their 60-year-old customers spend 40% more money than their younger counterparts. This is the main reason why Kashiwa Sogo is downsizing their merchandise for the young and expanding their merchandise for the older, heavier spending customer. Yesterday Kashiwa Sogo opened up an area of 2,600sqm floor space dedicated to women’s wear for women 60 years old and up.
If this new strategy proves profitable Sogo & Seibu will similarly renovate their other department stores. And when this happens it is only a matter of time before the other department stores follow suit.
Information and Data Sogo & Seibu, Seven & iHoldings & Nikkei